Industry pain: Taxi licences holder loses $480,000 in two years

UBER, the private car taxi service, has not yet rolled into Mackay but the uncertainty around the taxi industry has already hit taxi licence holders.

As a result of the legalisation of the personalised transport option in Queensland, a $100million assistance package is on offer to the taxi industry but that won't be enough to save taxi owners, according to Mackay Whitsunday Taxis manager and taxi licence holder Gerry Lucas.

A committee into the changing taxi industry found that a taxi licence in Mackay was worth $400,000 in March 2014 is worth $280,000 as of August this year.

Meaning Mr Lucas who owns four taxi licences in Mackay has lost $480,000 in just over two years.

Meanwhile, the whole industry is struggling with taxi licences in Brisbane dropping from $525,000-$175,000, Gold Coast $580,000-$230,000, Sunshine Coast $455,000-$410,000 and Cairns $590,000-$444,700 in that same time.

Mackay Whitsunday Taxi manager and licence holder Gerry Lucas who owns four taxi ficenses in Mackay has lost $480,000 in just over two years.

The taxi industry's pain has been voiced by former Liberal National Party premier Campbell Newman who wrote in his Courier Mail column that the taxi licences, once assets worth hundreds of thousands of dollars, were now in tatters.

"Their licence was supposed to be their superannuation and security in retirement," he wrote.

That was the case for Mr Lucas, who was going to retire after his 60th birthday next year.

"I wasn't that far from retiring and selling my licences," he said.

"I'm a self-funded retiree but because nobody knows what's going to happen in the industry there are no buyers (in Mackay)."

It was a common theme from the submissions the Transportation and Utilities Committee received which were released on Tuesday.

At the Mackay public hearing on October 20, owner and driver of a taxi, Trevor Moore, said "I am sure, along with the other submissions you have received from the industry, a very clear picture emerges of the impending uncertainty and hardships that the tax industry will experience of the next few years."

Taxi Council Queensland president and Mackay resident Max McBride raised concerns with the committee about the $100 million assistance package.

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Under the assistance package, a taxi licence holder will be given $20,000 from the state because of the depreciation of the licence.

If a taxi licence holder has more than one licence he or she will be given at most $40,000.

Mr McBride said there was a disparity paying $20,000 for a taxi licence worth up to $570,000 and $10,000 for a limousine licence worth up to $60,000.

Mr Lucas said another hurdle not covered by the package were the monthly costs, the 55 licences in Mackay and 18 in Whitsunday costing more than $6000 each to be allowed on the road before a driver could even take a customer on a ride.

As the manager for Mackay Whitsunday Taxis, Mr Lucas is concerned if too much pressure is put on the industry it could impact on a vital service provided to people with disabilities.

"In Mackay alone we have about 1000 wheelchair trips a month," he said.

"But who will continue to invest in wheelchair accessible cars when they cost $85,000 to replace and a normal sedan costs $40,000 to replace."

Another concern he has is due to the current economic climate.

"Our takings are down 35%-40% from a few years ago, like a lot of industries," he said.

"But we can't just put up our prices to make up for it."

Mr Lucas said it was a common misconception in Mackay that taxi drivers set their pricing when it was the State Government.

As of September 5 taxis charge $2.6km, $0.82 a minute, $1.50 booking fee and a minimum charge of $2.90 between 7am-7pm, $4.30 from 7pm-midnight and $6.30 from midnight-7am.